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New ordinance curbs syndication in aviation sector

Staff Reporter:

Civil Aviation and Tourism Adviser Sheikh Bashir Uddin yesterday said that newly promulgated Travel Agency (Registration and Control) Ordinance, 2026 has significantly curtailed syndication and malprac-tice in the ticketing business by making unethical practices more difficult.
He made the remarks at a press conference held at the Secretariat here, marking the issuance of the ordi-nance.
The adviser said the new legal framework brings airline operators, global distribution systems (GDS), new distribution capability (NDC), travel GSAs and travel agents under a single accountability structure.
“We have complicated the processes used for syndication so that those involved in malpractice can no longer operate easily,” he said.
He said extensive consultations were held with stakeholders and experts to introduce maximum barriers against syndication.
Emphasizing that his goal is not merely to reduce ticket prices but to rationalize them, Sheikh Bashir Uddin said fares have already fallen by 40 to 50 percent, but still remain unjustified.
“Ticket prices should come down further to a reasonable level,” he added.
Bashir also said civil aviation authorities have been empowered to detect fake online bookings through digital systems and manual checks, with monitoring authority vested in the chairman of the civil aviation authority.
At the press conference, Civil Aviation and Tourism Secretary Nasreen Jahan read out a written state-ment detailing the provisions of the ordinance.
She said the gazette of the ordinance was published on January 1 following amendments to the Travel Agency (Registration and Control) Act, 2013, aiming to ensure customer service, fair ticket pricing, good governance in air transport and protection of general passengers and expatriate workers.
The secretary said that between August and October 2025, several online travel agencies misappropriated large sums of money and fled abroad, while numerous complaints were received over fraud, misleading inducements and excessive fares charged to migrant workers.
She said the ordinance introduces stronger consumer and migrant protection measures, including ration-alisation of ticket prices.
Under the new rules, online travel agencies must maintain a bank guarantee of Tk 10 million due to their large transaction volumes and higher financial risks, while offline agencies will be required to provide a Tk 1 million bank guarantee.
Nasreen said it has been made mandatory to print the travel agency’s name, registration number and ac-tual ticket price on tickets to ensure transparency and accountability.
Blocking seats through fake bookings and sharing GDS login credentials have been declared punishable offences.
She said the ordinance requires agencies to source tickets directly from airlines or authorised platforms, eliminating multiple mark-ups and preventing artificial seat shortages created through syndication.
The secretary said strict conditions have been imposed to ensure financial discipline, including barring loan defaulters from registration, requiring affidavits against fraudulent activity, and mandating disclo-sure of actual ownership and sources of funds. Registration renewal will be allowed every three years subject to satisfactory financial and operational reporting.
She said penalties have been strengthened, with provisions for up to one year’s imprisonment, fines of up to Taka 1 million, or both.
In serious cases, the secretary said registration may be suspended or cancelled, and temporary travel re-strictions may be imposed in the public interest in consultation with the Ministry of Home Affairs.

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